[138 Pages Report] The global AI in retail market size is expected to grow from USD 736.1 Million in 2016 to USD 5,034.0 Million by 2022, at a Compound Annual Growth Rate (CAGR) of 38.3%. Increasing necessity for superior surveillance and monitoring at a physical store, growing awareness and application of AI in the retail industry, enhanced user-experience, improved productivity, Return on Investment (RoI), mainlining inventory accuracy, and supply chain optimization are some of the key factors fueling the growth of this market. The base year considered for this report is 2016, and the market forecast period is 20172022.

Objectives of the Study

The main objective of the report is to define, describe, and forecast the global Artificial Intelligence in retail market on the basis of types (online and offline), technologies, solutions, services, deployment modes, applications, and regions. The report provides detailed information regarding the major factors influencing the growth of the AI in retail market (drivers, restraints, opportunities, and industry-specific challenges). The report aims to strategically analyze micromarkets with respect to individual growth trends, future prospects, and contributions to the total market. The report attempts to forecast the market size with respect to 5 main regions, namely, North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America. The report strategically profiles key players and comprehensively analyzes their core competencies. It also tracks and analyzes competitive developments, such as partnerships, collaborations, and agreements; mergers and acquisitions; new product launches and product developments; and Research and Development (R&D) activities in the market.

Research Methodology

The research methodology used to estimate and forecast the AI in retail market begins with capturing data on key vendor revenues through secondary research, which includes directories and databases (D&B Hoovers, Bloomberg Businessweek, and Factiva). The vendor offerings have also been taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the overall market size of the global Artificial Intelligence in retail market that was derived from the revenue of the key players in the market. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key people, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The breakdown of profiles of primary participants is depicted in the figure below:

Other (Real-Time Pricing and Incentives, and Real-Time Product Targeting)

By Region

North America

Europe

APAC

Latin America

MEA

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the companys specific needs. The following customization options are available for the report:

Product Analysis

Product matrix gives a detailed comparison of the product portfolio of each company

Geographic Analysis

Further breakdown of the North American AI in retail market

Further breakdown of the European market

Further breakdown of the APAC market

Further breakdown of the Latin American market

Further breakdown of the MEA market

Company Information

Detailed analysis and profiling of additional market players upto 5.

The Artificial Intelligence (AI) in retail market is expected to grow from USD 993.6 Million in 2017 to USD 5,034.0 Million by 2022, at a Compound Annual Growth Rate (CAGR) of 38.3%. Factors such as increasing necessity for surveillance and monitoring at a physical store, growing awareness, and application of AI, enhanced user-experience, improved productivity, Return on Investment (RoI), maintaining inventory accuracy, and supply chain optimization are driving the global AI in retail market.

The report provides detailed insights into the global AI in retail market, which is segmented by type, technology, solution, service, deployment mode, application, and region. In the types, the online (eCommerce) retail market will have the largest market share during the forecast period. The online retailing includes buying and selling of FMCG, CPG, apparels, electronics goods, and other forms of life essentials. It excludes entertainment and travel services offered online. Contrary to the brick-and-mortar stores, customers no longer have to stand in long queues to buy their preferred goods. They can purchase them easily through mobile applications and websites, sitting comfortably in their homes or offices. The AI-based solution are majorly adopted by the online retailers to target the customer, who want to shop from the comfort of their homes.

Among solutions, product recommendation and planning is expected to hold the largest market share and is expected to continue its dominating position during the forecast period. Product recommendation is a very powerful aspect of the overall shopping cycle for any shopper. eRetailers are using AI to give a personalized experience to their customers and give recommendations on products they would like to purchase by showing relevant products. Moreover, machine learning and deep learning technology will remain the most significant technology contributing highest revenue compared to other technologies.

Whereas, the in-store visual monitoring and surveillance application is expected to have the highest growth rate during the forecast period. AI for video surveillance analyze the images in order to recognize humans, vehicles, or objects by using computer software programs. This can help in curbing the issue of shoplifting which is one of the major reasons to incur financial loss in stores. The cloud deployment model is expected to exhibit a higher market share, due to the rising demand for 24*7 availability of accessible information and low-cost maintenance services.

The report covers all the major aspects of the AI in retail market and provides an in-depth analysis for major countries across the regions of North America, Europe, Asia Pacific (APAC), Latin America, and the Middle East and Africa (MEA). North America, owing to the early adoption of new and emerging technologies and the presence of the major industry players, is expected to dominate the market in terms of market size, throughout the forecast period. The APAC region is expected to grow at the highest CAGR during the forecast period, owing to the growing adoption of AI-based solutions and services among retailers.

The issues related to diverse development framework, models, mechanisms in AI, privacy concern, and lack of skilled staff are some major challenges faced by the retail users deploying AI, which needs to be enhanced to improve the growth of the AI in retail market.